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StoneCo Ltd. (STNE) Stock Drops Despite Market Gains: Important Facts to Note
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The most recent trading session ended with StoneCo Ltd. (STNE - Free Report) standing at $11.26, reflecting a -1.83% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.38%.
The company's shares have seen a decrease of 13.5% over the last month, not keeping up with the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is forecasted to report an EPS of $0.29, showcasing a 7.41% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $594.78 million, showing a 7.56% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.10 per share and revenue of $2.42 billion. These totals would mark changes of +13.4% and +0.24%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. StoneCo Ltd. is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 10.46. This valuation marks a discount compared to its industry's average Forward P/E of 30.96.
We can additionally observe that STNE currently boasts a PEG ratio of 0.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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StoneCo Ltd. (STNE) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with StoneCo Ltd. (STNE - Free Report) standing at $11.26, reflecting a -1.83% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.38%.
The company's shares have seen a decrease of 13.5% over the last month, not keeping up with the Computer and Technology sector's gain of 1.78% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of StoneCo Ltd. in its forthcoming earnings report. The company is forecasted to report an EPS of $0.29, showcasing a 7.41% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $594.78 million, showing a 7.56% drop compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.10 per share and revenue of $2.42 billion. These totals would mark changes of +13.4% and +0.24%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for StoneCo Ltd. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. StoneCo Ltd. is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, StoneCo Ltd. is currently being traded at a Forward P/E ratio of 10.46. This valuation marks a discount compared to its industry's average Forward P/E of 30.96.
We can additionally observe that STNE currently boasts a PEG ratio of 0.41. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 83, putting it in the top 33% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.